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Diplomats are optimistic that they can finalize the agreement on Friday – betrayed diplomats who asked Bloomberg to remain anonymous. Negotiators are pressed by the deadline, as EU sanctions on Russian oil are scheduled to come into effect on December 5.

A debate arose in the block about how strict the price ceiling should be.

Poland, Lithuania and Estonia touch the price cap of 65-70 dollars per barrel.

These countries would rather buy crude oil at production cost, around $20.

Hungarian position

According to the diplomats present, Hungary is also among the main opponents of the price ceiling, saying that the price ceiling will not alleviate the Russian-Ukrainian war conflict.

According to Minister of Foreign Affairs and Trade Péter Szijjártó, Hungary must obtain exemption from the gas price cap and the oil price cap in order to guarantee the country’s energy security.

Cyprus, Greece and Malta are bracing for more expensive oil, possibly because their ships are at risk of losing importance amid low prices.

About 70-85 percent of Russia’s crude oil exports are transported not by pipelines, but by tankers. And the price cap would ban shipping, insurance and reinsurance companies from handling shipments of Russian crude worldwide unless it is sold for less than a maximum price set by the G7 and its allies.

The United States was the first to come up with the ceiling plan, which after several months of discussion, the G7 is expected to agree on a value in the $65-$70 range, Bloomberg previously wrote. The paper points out that, according to several EU diplomats, the proposed level is too high and will not have a significant impact on the Russian economy. The price range is almost the same as the average before the Russian invasion.

(Cover photo: Alexander Manzyuk / Reuters)